Concerns grew today for the future of Shoreham airport with reports its owners may be bought out by a private equity company.

Jobs could be axed if asset strippers take over - though some believe new owners could fuel the airport's expansion.

Rival companies Bridgepoint and 3i are competing to buy out the airport's controversial owner, Erinaceous.

The Croydon-based property firm bought the airport only last year and has since been investigated over a £10 million fraud scandal.

It is now the subject of a £375 million buy-out, amid fears new owners could hive off land for development, close businesses, or cut the airport from the Erinaceous portfolio.

But a possible expansion transforming the airport into a gateway to Europe could also come back into contention. Tony Mernagh, executive director of Brighton and Hove Economic Partnership, said: "Private equity firms are a bit of a mixed bag. Some are very good news and some considerably less.

"Erinaceous was never going to develop it into Brighton and Hove City Airport, which is unfortunate.

"However, it made it clear it wanted to improve the employment side of it - which is very important for the city.

"I would hope whoever takes over carries on with plans to upgrade and enhance employment space.

"It could be a reasonable investment as long as it's not bought by someone who wants to come along and make a quick buck."

The airport has about 30 companies offering charter flights, aircraft maintenance, flight schools, and air traffic control training.

Executive and pleasure flights depart for a growing number of destinations and the Sussex Police helicopter unit is also based at the airport.

Erinacious had pledged not to extend runways for bigger aircraft in the near future but that, too, could be back on the cards.

Mr Mernagh said: "The airport is quite a considerable employer but I don't think it has the sorts of assets that could be stripped. It's not a huge money-spinner but it could be.

"Hopefully they may well see it has the potential to become a proper regional airport. The land around it could also be developed as office or warehouse space."

Mark Froud, chief executive at Sussex Enterprise said: "Shoreham airport is a thriving local business that provides hundreds of jobs and premises for local companies, so we would want to see a firm commitment this will continue."

Erinaceous would confirm only that it has entered talks designed to lead to a takeover bid.